Blue Ink launches first-in-industry, risk-profiled and satellite funds of hedge funds

Bonolo Zwane, Managing Director of Blue Ink.

A member company of the bigger Sanlam group, Blue Ink Investments (Pty) Ltd “Blue Ink”, is launching regulated funds of hedge funds to Retail and Qualified investors from 1 August 2016.

This has been possible through partnering with sister company, Sanlam Collective Investments (RF) (Pty) Ltd “SCI”, the management company and platform responsible for the administration of regulated funds. SCI has received approval from the Financial Services Board to offer both Retail Investor Hedge Funds (RIHFs) and Qualified Investor Hedge Funds (QIHFs).

“As a fund of hedge fund business that’s been in the financial services industry from as early as the launch of the first DVD player, we’re quite thrilled to be able to offer our expertise to an expanded set of investors and importantly in an environment where the regulator has pushed for enhanced trust and transparency in hedge fund strategies,” says Bonolo Zwane, Managing Director of Blue Ink “Throughout SCI’s regulatory application process, we have had a sincere appreciation of the regulator’s rigorous interrogation to the benefit of investors.

Zwane noted their excitement regarding the launch of three Blue Ink funds of hedge funds that have been risk-profiled for retail investors in a manner that makes for seamless inclusion in their balanced investment portfolios. “We have also positioned differentiated specialist funds and re-invented fee structures to benefit qualified or institutional-like investors seeking a greater say and increased flexibility in building their portfolios.”

She sees Blue Ink’s role in the selection and blending of South African hedge fund financial services as key in a R70bn hedge fund industry that’s anticipated to grow further.

“We rigorously searched for niche investment talent and honour the underlying managers we’ve been invested in for more than 10 years.” She highlighted that Blue Ink’s selected hedge fund financial services providers handled the market rout admirably after the shock Brexit vote in the UK, which roiled markets around the world.

Zwane sees this as another strong indicator that hedge funds have a lot to offer in broader investment portfolios, with the ability to protect against downside risks.